The Single Best Strategy To Use For penny stocks

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Although penny stock trading in the United States is now principally managed as a result of policies and rules enforced by the SEC and FINRA, the genesis of the Handle is present in State securities regulation. The Point out of Georgia was the primary state to codify an extensive penny stock securities law.[thirty] Secretary of Point out Max Cleland, whose Business office enforced Condition securities regulations,[31] was a principal proponent in the legislation.

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According to the FBI investigation, de Maison would use fictitious names to persuade investors to buy shares of his shell organizations, Consequently driving up the cost of his shares and offering the illusion that investors were noticing revenue.

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An additional illustration of an action that skirts the borderline in between legit marketing and buzz is the case of LEXG. Lithium Exploration Group's market capitalization soared to in excess of $350 million soon after an in depth immediate mail campaign. The advertising drew upon penny stocks the genuine progress in generation and utilization of lithium, although touting Lithium Exploration Group's position within just that sector.

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